rfassett

Wow - I am going to have to start hanging out with a younger crowd!

JB - you did the right thing! Once you cross that line it is a very slippery slope beyond. Stay very far back away from that edge.

I still like my approach!

Ask Catherine to pay the guy a visit. Or call my other business - 1-800-BreakAKnee. Sometimes all it takes is the threat of brute force to get people to cooperate.

I was just doing a return with some stock sales and had a flash back to when I had to go to the basement and dig through the archives to find stock basis. Thanks IRS - for bringing the brokerage firms into the current century. That little thing (well, not so little) has saved me tremendous time on some returns.

I guess I did not mention in a previous post: We do print the return on decent paper - the printer / copier like this a lot better as well. We put the client copy in a nice folder and envelope that we get from Greatland. We use two different folders. If the work papers are too voluminous, then we use a folder with no back pocket and put the work papers in a separate envelope. For those with fewer work papers, we just put those in the pocket at the back of the folder. It is a very nice and professional presentation. The folder is not oversized and will fit nicely in the client's letter size file cabinet.

I review very few returns with the client. I am in communication with a good many of them all year long and we both have a good handle on how the return is going to look. For the rest, we have a check-in system whereby one of the girls ask the client a series of pertinent questions and then if anything looks strange during prep I get in touch with the client. I print the client copy and one of the girls check the client out going over highlights that I have made. If there are any further questions, I am called in to answer more technical questions. Having another member of the firm in the meeting allows me to get in and get out with very little time spent. This system is what allows me to prep over 500 returns during filing season - and still maintain what little bit of sanity I have left. We have been paperless (or less paper, more appropriately) since 2006 but continue to supply the client with a paper copy. We have two or three clients that like us to give them digital copies but we still give them a paper copy with the digital copy.

Had one walk in off the street this week who had the return done last year by a local back porch preparer (translated low fee). Asked our fee. We prefaced the response with, it is going to be A LOT more than last year and then quote him a number. He says he would rather pay that and know that it is right. (I should mention that this guy was referred by an ex-client). Then this guy proceeds to ask if we give military discounts. I ask if he is in the military and he says no, but I was. Then he proceeds to mention that Liberty will do the return for free. I start for the door to open it so he does not break it when I kick him out but he stops me and says, I will pay whatever you charge me because you come highly recommended. This ought to be fun.

I preach to my clients all the time - economics first, tax second. If the purchase makes economic sense, then let's talk about the tax benefits - and then we can marry the two together. In your case, he must have some other reason for wanting to spend $50,000 on solar panels beyond per economics or tax benefits. Case in point, I just spent $7,000 on a whole house generator. It makes very little economic sense, has no tax benefit, but I sleep way, way better at night now here in the back woods of PA. In your guy's case, he would need to save a ton of money on his energy costs to make this make economic sense. If his goal is to simply get off the grid and he is willing to pay a price to do that, then by all means, go for it and the tax benefit is just a bonus. But if you are asking the simple question of whether to tell a client to spend $50,000 to save $1,400 in tax - no, I would not.

Agreed - this does not create a second class of stock. The second class of stock issue is only pertinent to outstanding shares.

Good in PA.

I have one that has been here on and off for one client going on two years now. It is one of those comprehensive audits where he is required to look at every line and justify the number. Started off as a 2012 audit and the scope was broadened to include 2011 and 2013. I will gladly send the auditor to Tennessee, Wisconsin, Timbuktu...........no wait, I live in Timbuktu, I don't want him there. I will gladly send him anywhere and I will even pay the transportation costs. Any takers?

Once in over 30 years of practicing. And that one paid me the initial $500 and I never heard from them again. I school all of my clients about paying their fair share. It is not about increasing refunds in my office. It is all about preparing a return that is in line with the law. If the present prospect had no interest in coming to the party, which I truly suspect would not be the case, I can still sleep well at night.

Different cultures in all of our practices, I guess.

IRS attempted to put controls on preparers to, theoretically, weed out some of these non-professional preparers. Remember? And there was an uproar. Remember? So that all got washed away. Remember? So I am guessing it is up to us to educate the public when we see that they are being treated badly. The IRS is hand cuffed. We need to let the world know that we do not share in the same hand cuffing that the IRS has. I believe we need to do some self-policing and turn these inferior folks on their ear. And don't think for a moment that your clients and/or prospects are stupid. It was pointed out that the rentals were on E in 2012 (?) and moved to C later and now we have an EIC refund? That did not raise the eyebrows of the prospect? I would not believe that for a second.

Raise your fees Rita. Your community and mine are not all that different. I do not worry about competition. I charge enough to make a decent living with the clients I have and they respect me. The first thing I would tell this client is write me a check for $1,000 and I will work off of that to correct the prior year returns. (Note - prior year corrections take my highest billing rate.) The client will balk at the $1,000 but the fact is, you have three $300 returns to mess with. No guarantees that the $1,000 is going to cover my time so that is just a retainer to get me started. Client will say "I do not have $1,000". I then say, give me $500 now and the other $500 in 30 days. When I receive the other $500 I will begin work on your project. If the client bites, you have now set the stage for higher billings in the future. My 2015 tax return prep for this client would be between $375 and $400 depending upon what messy stuff went on in 2015. I repeat, your community is not all that different from mine. Yes there is plenty of competition. But I do not worry about that al all. I am not going to have all of the business here - and never wanted it all. If the prospects do not like my fee structure, they are welcome to go somewhere and get inferior work for their inferior pay.

Now that there just hurt my feeling! :) What's wrong with the great Commonwealth of PA? Oh, wait - I know. The whole taxing system!

The boiler makers work in several states for one employer one year and several states for different employers another year and one state for different employers another year. There is no rhyme or reason. I would not send your client packing too soon. Print out a couple of States filing requirements and show them to him. Most States, if not all, have a non-resident form or schedule. By deductive reasoning (if he is an IT guy, he should understand that term), that must mean the States want non-residents to report their income earned in that State. Here is a link to a place in my website where you can click on the different States to get some information. I would show him a couple of filing requirements and let him decide whether he wants to continue to be your client. http://fassettandassociatescpa.com/statetaxforms.php

I am not a Germany expert so cannot help you there. Unless any of the States are reciprocating states (like OHIO/PA) he most likely will have a filing requirement in each State he worked. I have my share of boiler maker clients that work all over the country and we file for every State that they work in. And if he did not work in Ohio, then I would think the only local you will be concerned about is the one where he lives. It is not his choice as to whether he files where he is suppose to. His choice is to follow the law or not. Your choice is to whether you are interested in aiding and abetting him if he chooses to not file where he is suppose to. Not sure any of that helps, but those are my thoughts.

My sense of wonder about all things computer tells me that I am grateful for the opportunity to click on the red "x" and am more grateful when nothing blows up. If I pass that hurdle, I test the waters no further. I simply save and close the return and then the program and then re-open. The urge is there to keep working. But as Medlin mentions, that is probably not the best approach.

I got this one also. Ignored it.

I have just finished up my 41st return (1-1065; 1-1120; 11-1120S; 28-1040) and was thinking just how smoothly things are going this year. I have to admit though, I am on pins and needles waiting for the other foot to drop. But like Jack says, make it worth your while. This is a teaching moment for that client.

While I do not necessarily disagree with your points, I would point out that the tax return is not always just for the IRS. Banks like to see completed returns. Vendors like to see completed returns. Even the clients like to see completed returns. Just sayin'!

8594?

I never have referred out a client. It is not my job to find them a new preparer. When I fired the bottom third of my client base several years back, I did it before the season started so they had plenty of time to do their own research. And there is only one other that I ever invited to leave. She was a real PITA and seemed to keep the whole office in a heightened level of anxiety whenever even her name was mentioned. She threw a fit when I said I was not interested in dealing with it anymore. Now I have a client base "to die for". I cannot think of one client that I would kick out right now. And like Rich, now it is completely MY decision as to who becomes a client. I have had three meetings with new prospects this year so far. Two will be clients, the other will not. I am grateful that I have arrived at that place with my practice. There was a time when I had to take anything that walked through the door. No more! But for the original post - I stand by my previous comment. Short, sweet and to the point. No explanation is necessary. If you do not want to deal with the client, just say that.